5 Questions
What does the term 'numeraire' refer to in shadow pricing?
The unit of account where values of inputs and outputs are expressed
In the context of tradability, when is a good/service considered non-tradable?
When its import price is less than its domestic cost of production
According to the UNIDO approach, what should be considered when calculating shadow prices related to taxes?
Taxes should be included when a project diverts non-traded inputs or adds to non-traded consumer goods
What source does the UNIDO approach suggest for determining shadow pricing based on the impact of a project on the national economy?
Increase or decrease in total consumption or production in the economy
Why are governments of developing countries concerned about the impact of projects on savings and their value?
Most developing countries face scarcity of capital
Learn about the UNIDO approach in Social Cost Benefit Analysis based on the publication of UNIDO Guide to Practical Project Appraisal in 1978. Explore the five stages involved, including the calculation of financial profitability of the project and the importance of technical and financial analysis.
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